22: ROI may be negative initially, but that won’t last

- Tips For Blogging

Many would be pondering when bloggers would make the money spent in all these back, but I have no answer on that. Initially, return on investment (ROI) is expected to be negative. This means that in a certain month, a blogger could spend up to $500 on promotions, and make $400 back through the Adsense program. This is more than possible. This means a loss of $100.
One thing you will have to note is that if you keep spending on promotion and creating quality content, the loss would soon start to reduce and will eventually get to zero (0). This means you can spend $500 on promotions and gain around $500 back.
The next step would be to start making profit. If you stop promoting at this stage, it is possible to still make profit, but growth will never be guaranteed. Keep promoting and you will notice an increase in profit. You may spend $500 this month and make $700 back. Don’t find the profit of $200 disgusting, it will still change.
Eventually, your profit could run into $1000 and then get to a point where profit will remain stagnant. That’s a dangerous period. You will need to change several variables, especially your advertising budget. You will discover that as you increase the budget for advertising, earnings also go up.
There are other things you could do when you hit that static mark. We will discuss ways to increase earnings by changing certain variables later on.